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Posted Tue, 19 Nov 2024 11:54:36 GMT by s1234
Residential and Non-residential property disposal in the same year, with both creating a Capital Gain. Can you choose which of the Lower tax rate (Residential 18% or Non-residential 10%) you can apply to your lower rate band allowance of 37,700? HMRC Guidance only mentions the tax-free allowance (currently £3000/year) can be used against the highest rate, but it does not seem to mention anything about the basic rate band.       "If you have gains from both residential property and other assets       You can use your tax-free allowance against the gains that would be charged at the highest rates (for example where you would pay 24% or 28% tax). "
Posted Tue, 26 Nov 2024 10:37:50 GMT by HMRC Admin 19 Response
Hi,
Tax is calculated on residential property and carried interest at basic rate before being calculated against other sources of capital gains.  
The rates of tax for residential property are 18% and 24%. Up to 29 October 2024 the other rates were 10% and 20%. From 30 October 2024, the other rates will change from 10% and 20% to 18% and 24% respectively.
Thank you.

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